Need some advice on buying a PS3 headset (headphone + microphone). I'm looking for a headset that:

1) Isn't wireless/use batteries.

2) Does not use the AV output or whatever you call the red, white, yellow cables. The reason is that I'm already using that to capture game footage. I'm hoping that the headset can just be connected via USB.

3) Is able to output the game audio through the headset speakers (ideally 2 speakers with stereo sound)

Is this even possible, and if so, what product do you guys recommend?

http://www.amazon.com/Wireless-Stereo-Headset-Playstation-3/dp/B0053OLY9O

Best gaming headset I've ever used, puts my turtle beaches to shame. The sound quality is fantastic for the price and it fits very comfortably. Now it's not going to have the quality of the super high end headphones but those range upwards of $1000. It is wireless but it doesn't take batteries, it charges straight through the PS3. It connects with the USB dongle, but be careful not to lose it. You can't get the USB replaced so the headphones will be completely useless.

I know you say you don't want one that is using the red and white cables to capture audio, but I'm recommending one anyways and I'll explain.

This headset is cheap and works really well. I've never had an issue hearing someone while using this headset on the PS3, though on PC when used through Steam, all the options have to be changed on a game by game basis, and that's an issue with Steam, not with the headset. The headset allows you to change game volume and chat volume seperately. The USB when playing on the PS3 is for chat only while the red/white audio hook to the tv to allow you to hear the games music and sound. The red/white audio cables have male on one side and female on the otherside, so you can still use the inputs you're using to record your gaming footage while listening to the game through the headset.

I don't exactly know how long the cord is for the headset, but maybe 12-15 feet?

http://www.amazon.com/Force-Amplified-Stereo-Gaming-Headset-Pc/dp/B002I0J5CO/ref=sr_1_2?ie=UTF8&qid=1384579259&sr=8-2&keywords=turtle+beach+p21

Can you use it while you're charging via USB? Just like how you can charge a phone and use it the same time?

Edit: Also, if you have it, can you test something out for me?

On the XMB, can you go to Audio Device Setting and set output device to "System default device"? Does that still let you hear the game audio through your headset?

Yep. 

Also, if you have it, can you test something out for me?

On the XMB, can you go to Audio Device Setting and set output device to "System default device"? Does that still let you hear the game audio through your headset?

Again, it's really convoluted, but in order to record online chat, I need to do this. Man, and this is all ultimately so that I can 1) hear all chat and game sound via headphones so that 2) I can record my own voice on a seperate device (e.g. PC) without getting the TV sound.

Yeah sure, give me a minute. 

Ok so when I turn on the headset it automatically set the output device to Wireless Stereo Headset and did not let me change it to the system default device. 

Oh no. No no no. The updated Pulse Elite is leagues better. It has a sturdier build, better sound (has a built in subwoofer), and it has a aux cord that allows you to use it on other devices like an MP3 player, Vita/3DS, and tablets. I've had both and the Elites kicks the originals ass, best Headset for your money.

http://www.amazon.com/Pulse-Elite-Wireless-Stereo-Headset-63089006306200/dp/B0087OZ5FG/ref=sr_1_1_title_0?s=videogames&ie=UTF8&qid=1384584673&sr=1-1&keywords=sony+pulse+elite

*edit* It also has different modes for different types of games and even has an app for ps3 that you can make your own custom settings.